Lightning service provider (LSP)
Also · LSP
A Lightning service provider opens channels, supplies inbound liquidity and routes payments for wallets, so users get a working Lightning wallet without running a node.
Running a Lightning node well means opening channels, buying inbound liquidity, staying online and rebalancing. Most people will not do that. A Lightning service provider does it for them. It opens a channel to the user’s wallet, often on the fly when the first payment arrives, keeps liquidity available on its side and routes payments in and out.
The user still holds their keys, so this is not custody. But it is a dependency. The LSP sees the user’s payments, charges fees for channels and liquidity, and must stay in business for the wallet to keep working smoothly. If it disappears, the user keeps their funds and must close channels on-chain. Many of the simplest non-custodial wallets rest on this model.
In French · Fournisseur de services Lightning (LSP)
